Why financial aid doesn’t always save the day

Here’s something that probably happens a lot: A student receives an acceptance letter from their favorite school, sees how much they’ve been offered in financial aid, and thinks “Yes! Now I’ve got the money to get into this school!” But that might not actually be the case.

Financial aid often includes loans

While some financial aid may come in the form of scholarships or grants, it often includes student loans. And loans don’t make something more affordable, they just delay the time when you have to pay it all back. Plus, loans add interest, which actually makes them more expensive.

So if you or your family can’t really afford to pay back a loan of the size you’re being offered, that dream school may not be the right choice for your future.

There’s no question it can feel frustrating. Because that first glance at financial aid can make you think everything’s fallen into place. But once you realize how much of it is a loan, you can find yourself confronting a whole new set of decisions.  Like, “Should I borrow this much?”  “Is this school so much better than my less expensive options?”  “Would I be better off starting at a community college?” And, “I want to go so much but we can’t afford it.”

And to add to the pressure, you usually only have about 30 days from the time you receive your acceptance letter until you have to commit to where you’re going.

Still you do have options – and you can check them out on this page, entitled “When the college you want costs more than you have.”